May 31 marks the official deadline for the 2025 corporate income tax annual settlement.

This was supposed to be a routine tax calendar event, but for cross-border e-commerce sellers, this year is different—as soon as the annual tax settlement period ended, risk control lists began to be distributed nationwide in bulk. A large number of sellers with annual sales in the millions and tens of millions have already started receiving text messages and phone calls from the tax authorities.

If you’ve already received it, don’t panic just yet. This article will walk you through every step you need to take after being flagged—and the pitfalls you absolutely must avoid.

Which stage are you in right now? First, figure that out.

When the tax authority contacts you, it typically does so in three stages, with the severity increasing at each stage:

Level 1: SMS notification. The message typically reads: ”There are discrepancies in your company’s reported data. Please verify and correct the report promptly.” This serves as a notification, indicating that the system has detected data discrepancies but has not yet initiated mandatory procedures.

Stage 2: Telephone Notification. The case officer or the Tax Administration Section will call you directly to ask you to explain the situation and provide documentation. At this stage, you have already been placed on the audit list.

Level 3: Interview/On-site Visit. The Tax Source Section or Risk Control Section will require you to bring all your business records to the tax office for a face-to-face explanation. At this point, it is no longer a matter of simply ”providing an explanation.”

First, determine which level you're at. The strategies you should use vary significantly depending on the level.

A Five-Step Response Plan: From Receiving the Notice to Resolving the Risk

Step 1: Don't pretend you didn't see it

This is the most serious mistake. Many bosses think, ”If I don’t respond, will it just blow over?”

This won’t just go away. The platform data has already been forwarded to the tax authority’s system. If you don’t respond, the system will escalate the matter step by step—from text messages to phone calls, from phone calls to in-person visits, and from the Tax Administration Division to the Audit Bureau. The Audit Bureau has authority equivalent to that of the public security authorities; it can directly open a case and launch an investigation without requiring your cooperation in providing information.

There have already been real-life cases in Shenzhen: a seller with more than 10 stores and annual sales exceeding 100 million was placed on the list of ”abnormal, uncontactable entities” simply because the legal representative failed to answer calls from the tax bureau, which disrupted the stores” normal operations. Silence is not golden; silence pushes you from ”cooperating with the investigation” to “resisting the investigation.”

Step 2: Don't just blurt out whatever comes to mind

This is a mistake even more dangerous than silence. A tax interview is not an ordinary business negotiation—a casual remark you make could serve as the basis for subsequent tax assessments and fines.

Some of the most common situations where people ”say the wrong thing”:

✘ The tax authority asks, ”How were your goods shipped out?” You casually reply, ”Through a logistics company”—since there is no customs declaration record, the transaction is automatically treated as a domestic sale, and you’ll be required to pay back VAT at a rate of 13%.

✘ When the tax authority asks, ”Do you have an invoice for this purchase?” and you reply, ”The factory doesn’t issue invoices”—you won’t be able to claim input tax credits, and the full amount will be subject to corporate income tax.

✘ When the tax office asks, ”Have you reported all your business income?” and you say, ”I didn’t report some of it”—by voluntarily admitting to underreporting, you’ll immediately trigger back taxes and penalties.

You’re not trying to hide anything; you just don’t know how to answer in technical terms. But the tax authorities don’t care about your intentions—they only look at what you actually say.

existStep 3: Organize the data first, then back toagree (to do sth)

Before you’re officially called in for a meeting, there are at least a few things you need to do:

✔️ Pull sales data from all platforms (Amazon, TikTok, independent websites, etc.) to get a clear picture of the situation

✔️ Organize bank payment records and transaction histories for third-party collection accounts to trace the flow of funds

✔️ Review customs declaration records—identify which ones were properly declared and which were “purchased-on-behalf” exports, and track them separately

✔️ Organize purchase records and shipping documents, and do your best to gather all cost supporting documents

Many people don’t realize until they arrive at the meeting that they can’t even provide basic data. When the tax inspector asks you what your sales were last year, you spend ages scrolling through your phone—the tax authorities won’t see this as mere lack of preparation; they’ll assume you’re trying to hide something.

Step 4: Find a professionalSomeone will go with you

A tax interview isn’t something one person can handle alone. The outcome—in terms of the amount of back taxes owed—can differ by hundreds of thousands depending on whether a layperson or an expert handles the interview.

The role of a professional tax specialist is not to help you ”pull strings,” but rather to: explain your business model, accounting discrepancies, and cash flow using professional terminology recognized by the tax authorities; provide compliant responses when your tax officer raises questions; and help you secure the lowest possible back taxes and the most lenient corrective measures.

Many business owners think they’re articulate and well-connected, only to discover once they arrive that the issues raised by the supervisor don’t match the answers they’ve prepared at all.

Scan the QR code to add a Qicaiying consultant and get a one-on-one compliance assessment

Cell phone: 18676749275 ｜ WeChat: qcygscszk

Step 5: Take the initiative to make corrections and capitalize on the window of opportunity

There is currently a very important policy window: for tax filing issues from previous years, taxpayers who proactively file amended returns may be treated leniently—in some regions, they may even be allowed to pay back taxes at the preferential tax rate applicable to assessed taxation, rather than being required to pay the full amount under the audited taxation method.

However, this window of opportunity is narrowing. Regulatory officials in many regions are already tightening the criteria: applications for assessment will only be accepted after outstanding issues have been resolved and the chain of evidence for business operations has been completed. Applications submitted without first resolving these issues will be rejected without exception.

While a case has not yet been formally opened, take the initiative to correct errors, file missing reports, and cooperate fully—if you complete these three steps, the issue can be resolved during the tax administration phase in the vast majority of cases, without the need to proceed to the audit and case filing stage.

Compliance isn’t a one-person job—Qicaiying is with you every step of the way.

The biggest fear in cross-border tax compliance isn’t making mistakes—it’s giving up halfway through: having a plan but no one to implement it, encountering roadblocks with no one to resolve them, and facing inquiries from the tax authorities with no one to speak on your behalf.

Qicaiying’s cross-border tax and financial compliance support service follows a three-step process: On-site due diligence to assess your actual situation → Customizing a compliance framework tailored to your needs → Project-based, end-to-end support through every customs declaration and every tax refund. From import/export qualifications to cash flow compliance, and from organizing the chain of evidence to liaising with tax authorities, a dedicated specialist will follow up on every step.

It’s not just about submitting a report and walking away—it’s about staying with you until compliance is truly implemented.

Received a notice from the tax authority and don’t know how to respond? Scan the QR code to add a Qicaiying consultant and get a free initial risk assessment to help you determine your current risk level and develop a response strategy.

Scan the QR code to add a Qicaiying consultant and get a one-on-one compliance assessment

Cell phone: 18676749275 ｜ WeChat: qcygscszk

Under ”Tax Diagnosis,” Qicaiying Consultants will provide you withComparison and Analysis of Reported Data, identify risk areas, and propose corrective measures.

About Enterprise Caiying Group

Established in 2015 and headquartered in Shenzhen, Qicaiying Group specializes in providing one-stop financial, tax, and corporate compliance services to cross-border e-commerce companies and businesses expanding overseas. Its services include company registration in Hong Kong and overseas, bank account opening, cross-border financial and tax compliance, VAT/EPR registration, bookkeeping services, and corporate identity planning. Having served over 10,000 companies to date, it is a trusted financial and tax compliance partner for cross-border sellers. Qicaiying Group provides business registration and related commercial and tax services for companies in the United States, Singapore, Japan, Thailand, Malaysia, Canada, Mexico, Brazil, UK companies, French companies, New Zealand companies, Vietnamese companies, Indonesian companies, Philippine companies, and Dubai companies, among others. We also provide corporate services for domestic company registrations in Hong Kong, Shenzhen, Guangzhou, Shanghai, Hangzhou, Beijing, and Hainan, including annual reviews and audits, bookkeeping and tax filing, Mandatory Provident Fund (MPF) contributions, information updates, bank account openings, ODI filings, BVI registrations, tax compliance, and cross-border e-commerce support and management services. Please feel free to contact me if you need assistance. 📱 Mobile: 13045886252, 💬 WeChat: qcy20251218